Financial Analysis: Industrial Logistics Properties Trust (NASDAQ:ILPT) versus Sila Realty Trust (NYSE:SILA)

Sila Realty Trust (NYSE:SILA) and Industrial Logistics Properties Trust (NASDAQ:ILPT) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Valuation & Earnings

This table compares Sila Realty Trust and Industrial Logistics Properties Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sila Realty Trust	$186.86 million	7.40	$42.66 million	$0.69	36.31
Industrial Logistics Properties Trust	$442.32 million	0.92	-$95.67 million	($1.40)	-4.40

Sila Realty Trust has higher earnings, but lower revenue than Industrial Logistics Properties Trust. Industrial Logistics Properties Trust is trading at a lower price-to-earnings ratio than Sila Realty Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Sila Realty Trust pays an annual dividend of $1.60 per share and has a dividend yield of 6.4%. Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.2%. Sila Realty Trust pays out 231.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Industrial Logistics Properties Trust pays out -14.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Sila Realty Trust and Industrial Logistics Properties Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sila Realty Trust	0	0	2	0	3.00
Industrial Logistics Properties Trust	1	0	0	1	2.50

Sila Realty Trust currently has a consensus price target of $28.00, suggesting a potential upside of 11.76%. Industrial Logistics Properties Trust has a consensus price target of $5.00, suggesting a potential downside of 18.83%. Given Sila Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Sila Realty Trust is more favorable than Industrial Logistics Properties Trust.

Volatility & Risk

Sila Realty Trust has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.39, meaning that its stock price is 139% more volatile than the S&P 500.

Institutional and Insider Ownership

49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. 0.8% of Sila Realty Trust shares are owned by company insiders. Comparatively, 1.8% of Industrial Logistics Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Sila Realty Trust and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sila Realty Trust	20.43%	2.80%	1.93%
Industrial Logistics Properties Trust	-20.73%	-9.25%	-1.71%

Summary

Sila Realty Trust beats Industrial Logistics Properties Trust on 11 of the 17 factors compared between the two stocks.

About Sila Realty Trust

Sila Realty Trust, Inc., headquartered in Tampa, Florida, is a net lease real estate investment trust with a strategic focus on investing in the large, growing, and resilient healthcare sector. The Company invests in high quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio comprises high quality tenants in geographically diverse facilities, which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of June 30, 2024, the Company owned 137 real estate properties and two undeveloped land parcels located in 64 markets across the U.S.

About Industrial Logistics Properties Trust

Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties. As of December 31, 2023, ILPT's portfolio consisted of 411 properties containing approximately 60 million rentable square feet located in 39 states. Approximately 77% of ILPT's annualized rental revenues as of December 31, 2023 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA.